Current Report Filing (8-k)
September 27 2018 - 4:45PM
Edgar (US Regulatory)
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON DC 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported)
September 21, 2018
CONSUMER PORTFOLIO SERVICES, INC.
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(Exact Name of Registrant as Specified in Charter)
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CALIFORNIA
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1-14116
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33-0459135
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(State or Other Jurisdiction
of Incorporation)
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(Commission
File Number)
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(IRS Employer
Identification No.)
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3800 Howard Hughes Parkway, Suite 1400, Las Vegas, NV 89169
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(Address of Principal Executive Offices) (Zip Code)
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Registrant's telephone number, including
area code (949) 753-6800
Not Applicable
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(Former name or former address, if changed since last report)
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Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant
under any of the following provisions (see General Instruction A.2. below):
o
Written communications
pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o
Soliciting
material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o
Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o
Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Indicate by check mark whether the registrant is an emerging
growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities
Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company
¨
If an emerging growth company, indicate by check mark if the
registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards
provided pursuant to Section 13(a) of the Exchange Act.
¨
ITEM 1.01. ENTRY INTO A MATERIAL DEFINITIVE
AGREEMENT.
On September 21, 2018, Consumer Portfolio Services, Inc. ("CPS"
or the "Company") and its subsidiary Page Eight Funding LLC renewed and amended their existing revolving credit
agreement (as renewed and amended, the "Credit Agreement") and related agreements with Citibank, N.A. (the “Lender”),
and with others. Loans under the Credit Agreement are to be secured by automobile receivables that CPS now holds or may purchase
in the future from dealers.
Under the Credit Agreement, and subject to its terms and conditions,
the lenders have agreed to lend from time to time through September 21, 2020 up to a maximum of $100 million. At the
conclusion of the two-year revolving period, at the election of either the borrower or the lender, the loans are to amortize for
an additional one year, and then become due in full. Loans under the Credit Agreement bear interest during the revolving period
at a floating rate equal to one-month LIBOR plus 3.00%, but in all events no less than 3.75% per year, and during the amortization
period (if any) at a floating rate equal to one-month LIBOR plus 4.00%, but in all events no less than 4.75% per year. The
loans are subject to acceleration upon the occurrence of certain defined events of default. In connection with the renewal of the
Credit Agreement, CPS paid a closing fee of $730,000 to the Lender.
Affiliates of the Lender have also performed investment banking
and advisory services for CPS from time to time, for which they have received customary fees and expenses. Additional
information regarding transactions and relationships between CPS and affiliates of the Lender is set forth in the definitive proxy
statement of CPS filed July 3, 2018, under the caption “Certain Transactions – Citigroup,” which information
is incorporated herein by reference.
CPS disclaims any implication that the agreements described
in this report are other than agreements entered into in the ordinary course of CPS's business.
ITEM 2.03. CREATION OF A DIRECT FINANCIAL OBLIGATION OR AN
OBLIGATION UNDER AN OFF-BALANCE SHEET ARRANGEMENT OF A REGISTRANT.
The information provided in response to item 1.01 is incorporated
herein by reference.
CPS first incurred indebtedness under the original Credit Agreement
in the amount of approximately $9.1 million on May 14, 2012. As of the date of this report, the amount owed was $21.6 million.
CPS intends to incur indebtedness under the Credit Agreement from time to time as it purchases motor vehicle receivables from dealers.
CPS does not undertake to provide updates regarding the amount of indebtedness outstanding from time to time, and no inference
should be drawn that such indebtedness has not changed.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act
of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
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CONSUMER PORTFOLIO SERVICES, INC.
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Dated: September 27, 2018
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By:
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/s/ JEFFREY P. FRITZ
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Jeffrey P. Fritz
Executive Vice President and Chief Financial Officer
Signing on behalf of the registrant
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